The short-term outlook for the stock of India Glycols is bearish. The stock has been struggling to see a sustained break above the psychological level of ₹1,000 since the beginning of the year. Resistance is at ₹1,050-₹1,080 region. Though the stock has been attempting to bounce over the last two days, it is not showing any strength. As such, any intermediate rise above ₹1,000 is likely get fresh sellers in the market. Also the upside is likely to be capped at ₹1,080.
As long as the stock stays below ₹1,080, a fall to ₹870 is likely now. A break below ₹870 can then drag the stock further lower to ₹800-₹790 thereafter. Traders can go short at current levels. Make use of intermediate bounces to accumulate shorts at ₹1,030. Keep the stop-loss at ₹1,090. Trail the stop-loss down to ₹970 as soon as the stock falls to ₹890. Revise the stop-loss further lower to ₹860 as soon as the stock falls to ₹840. Book profits at ₹820. The bearish outlook will get negated only if the stock breaks above ₹1,080 decisively. Such a break will boost the bullish momentum and take the stock higher to ₹1,250-₹1,270.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)